June 2015 Issue of In Business Magazine by InMedia

JUNE 2015

Customer Loyalty: Measure, Analyze & Strategize for Business

Tech Sectors How Technology Is

Sustaining Arizona's Economy Financial Wellness Hot Employee Benefit

What Experts Really Know to

Make Business Success Why Arizonans

Buy Local

THIS ISSUE Top Tech: Leading Tech Companies Profiled

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JUNE 2015

COVER STORY

Tech Sectors: The technology advantage, sustaining Arizona’s economy

Reaching out to individual companies for insights into their respective fields, In Business Magazine presents an overview of the economic sector that will sustain Arizona into the future. FEATURES

Finance: Employee Wellness Benefit

The move is on to tackle financial illiteracy, and RaeAnne Marsh explores why and how businesses are making this their concern.

Customer Loyalty: Gauge It as a Growth Predictor

Jeff Sauro discusses how actually measuring and analyzing customer loyalty pays off in planning company strategy. DEPARTMENTS

Guest Editor

Ken McMahon, vice president of Sales for the Mountain West Region at CenturyLink, introduces the “Technology” issue.

Feedback

Noted business and community leaders Robert Brannen, Ph.D.; Wendy Jameson; and Alberto Osio respond to In Business Magazine’s burning business question of the month.

Briefs

“The Wrike Place,” “Work Simply. Work Securely.” “Truly Going Digital,” “Get on the Right Page” and “High-Performance Building Is New Home for Manufacturer”

SPECIAL SECTION Presented By

Top Tech Profiles of the Leading Technology Companies

CenturyLink Enterprise Technology Services Infusionsoft Omnis Network OneNeck IT Solutions Sponsored By

Top Tech

Profiles of the leading tech companies

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Technology

“IT Staff in Demand,” “Communication Control,” “Secure Against Internal as well as External Breaches” and “Securing Mobile Financial Access”

Healthcare

“More Doctor Time,” “Crowdfunding Addresses Medical Need” and “3-D Print for Medical Use”

By the Numbers

Cox Business survey shows why Arizona consumers like to buy local.

DEPARTMENTS

From the Top

Blue Sky Pest Control co-founders Curtis Whalen and Nathan Woolf encourage employee initiative.

Legal

Attorneys discuss important intellectual property issues for business owners.

Books

New releases give fresh insights on business thinking.

Nonprofit

Nonprofits should focus on leadership development for young professionals, especially millennials.

Assets

2015 BMW Alpina B7 Sedan Plus: The latest office speaker phones offer sophisticated features.

Power Lunch

The Montauk Plus: Breakfast is good for lunch, too.

Roundtable

Success means being able to answer four core business questions without having to stop to think. ON THE AGENDA

Spotlight

13th Annual BALLE Conference — Business Alliance for Local Living Economies 14th Annual Small Business Forum & Expo — U.S. Department of Energy

Calendar

Business events throughout the Valley

Technology is a jobs multiplier. Every one job added in the technology sector creates 4.3 jobs in other services.

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Join us for this All-Day Event on

Technology

June 2015 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Presented by

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

INTERFACE – Phoenix F2F Events, Inc. (F2F) produces CPE-accredited educational conferences for IT professionals focusing on the latest developments in information security, IT infrastructure and communications. F2F’s INTERFACE conference series is dedicated to providing both attending delegates and sponsors a strong return on their investment of time and resources.

Dorothy Wolden, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com

As a key-influencer on the evaluation of IT solutions, INTERFACE was developed for you. An educational symposium addressing today’s most critical IT challenges: • Business Continuance & Recovery • Network & Data Security • Enterprise Communications

Included in your INTERFACE Experience: • 20 Educational Seminars • Keynote Speaker • Lunch Buffet • 40 Vendor Exhibits • Hosted Reception

Friday, June 19, 2015 The Westin Kierland Resort 9:00a – 4:30p INTERFACE-Phoenix IT Conference Exhibitor space available from $3000 Attendance is free for registered guests

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com WESTMARC westmarc.org

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June 2015

VOL. 6, NO. 6

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers

William Bessette Ellen Joyce Conroy Mike Hunter Scott James Alexandra Lyon Jeff Sauro Michal Tyra

ADVERTISING

Operations Louise Ferrari Business Development

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President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

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Office Manager Brittany Longfield

Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 6, No. 6. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisersâ&#x20AC;&#x2122; claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. ÂŠ 2015 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

INBUSINESSMAG.COM

KEN MCMAHON, CENTURYLINK

Technology: An Expanding Force

Ken McMahon is the vice president of sales for the Mountain West region of CenturyLink. He oversees strategic partnerships that support Enterprise customers in Arizona, Colorado and New Mexico. His organization helps today’s IT organizations solve complex business challenges such as the explosion of applications, big data and data quality, security threats, cloud migration, upgrading existing networks and more, and he is responsible for CenturyLink’s revenue growth in these business segments. McMahon’s 18 years’ experience in the telecommunications industry encompasses leadership roles in operations, marketing, e-commerce and vendor management. He currently serves on the Greater Phoenix Chamber of Commerce Board of Directors and is the incoming chair for 2015-2016. He also serves on the Patrick Peterson Foundation.

Arizona’s strength in technology is broad. Leading and emerging companies in a wide range of technology sectors have operations in our metropolitan centers and are helping Arizona claim a reputation as a second-to-none business destination. Arizona has a wealth of assets that we can leverage to build an ever-stronger and more diversified economy. Our enterprising and active tech community, strong higher education institutions, talented work force and business-friendly amenities, including one gigabit per second Internet service, are all important parts of Arizona’s strategy to recruit new businesses — and accompanying high-paying jobs — to our state. Businesses today consider strong technology infrastructure a “must-have,” and Arizona’s smart elected officials and business leaders have led the charge to invest in enabling technologies such as next-generation broadband service. Keeping Arizona on the cutting-edge of technology drives innovations that address critical needs, such as improvements in healthcare and education, while helping all businesses improve their productivity and efficiency. Reaching out to individual companies for insights into their respective fields, In Business Magazine presents an overview of the economic sector that will sustain Arizona into the future. Companies include longstanding leader Microchip Technology, which has helped Arizona be 4th in the nation in semiconductors and electronics; Axosoft, an information technology company founded by one of the Valley’s technology pioneers; and TGen, an important force in the key realm of health and bioscience. Financial wellness is another growing area of business, and In Business Magazine editor RaeAnne Marsh discusses why and how companies are focusing on this as a benefit to their employees. Scott James probes the question of what differentiates experts who have developed a brand around their expertise and those who, in spite of being good at their work, are not able to launch a truly successful platform. And discussing customer loyalty as a growth predictor, Jeff Sauro offers tips on how a business can measure it and use that data. The regular monthly departments inform on topics that range from business security protocols to choices of where to enjoy a business lunch. This issue also presents a Top Tech special section, with profiles on some of the Valley’s leading companies. I’m pleased to help bring you this June issue of In Business Magazine, and hope you enjoy it. Sincerely,

Ken McMahon Vice President of Sales for the Mountain West Region CenturyLink

— to enhance our company performance, to energize our economic development and because of backing by venture

players in specific segments within the technology sector about the overall effect. Our thanks to Ken McMahon of CenturyLink for leading

capitalists. The enormous diversity in this significant area of

this tech issue of In Business Magazine. A longtime player in

Arizona’s overall economic picture is something we look at in

business here, CenturyLink is a prime example of the impact

our cover story for this issue of In Business Magazine. Where

technology is having on growing a business — even one as large

is technology really having an impact? Our editor speaks to key

as CenturyLink.

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

INTERFACE Be a part of the Valley’s premiere technology event for business and those in the tech world. Presented by Arizona Technology Council and In Business Magazine. Friday, June 19th, at The Westin Kierland. See page 31.

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com Business Events/ Connections: businessevents@ inbusinessmag.com

Economic Impact of Technology “Technology.” We hear this word constantly used in business

Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com

—Rick McCartney, Publisher

JUNE 20 1 5

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VALLEY LEADERS SOUND OFF

Arizona has been recognized as a hotbed for startups, and technology is one of the hottest sectors. There are a number of accelerator and awards competitions that recognize technology startups. What has been the result, to your company, of winning one or more of these competitions?

ROBERT BRANNEN, PH.D. WENDY JAMESON

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com

President Agave Semiconductor Sector: Technology

Co-Founder and Chief Executive Officer Colnatec Sector: Technology

Chief Executive Officer Yolia Health Sector: Biosciences

Arizona has a lot of promising tech startups that are developing exciting new technologies, and our state has a lot of wonderful things going for it that make it a great place to start a new company. We feel very fortunate to be one of the winners of the Arizona Innovation Challenge. We were able to use the award to bring on the engineering resources that were required to finish our early-stage product development. An even greater benefit has been the connections made through the Arizona Commerce Authority. The mentoring provided through the Venture Ready program has been tremendous; and the relationships that were developed with the local business leaders and volunteers are still ongoing. Getting connected with Arizona’s startup ecosystem has been the best part of participating. The advice they provide is invaluable.

Colnatec was the first Valley company to win the Arizona Commerce Authority Innovation Challenge Grant in 2011. Funding assisted growth and product development, but we also benefited through exposure to new connections and opportunities. The press we got introduced us to funding sources and demonstrated that our tech was credible, and the ACA has been exceptional at keeping us connected to the local tech community. Launching a semiconductor equipment startup during the recession was exceptionally difficult — funding sources were limited for even the most promising tech projects, especially one with heavy data requirements and asset needs. The ACA funds then were critical in helping us get products commercially ready, finding test labs to generate data required, and pushing them out to the 40-plus countries where we export. We are now positioned to take the lead in next-generation equipment for making today’s hottest electronics, from cell phones to solar cells and more. Without funding like the ACA provides, novel scientific research and the products developed as a result cannot reach commercialization. We’re very thankful for our opportunity!

Winning the 2013 Arizona Innovation Challenge and the Innovator of the Year Award was a hard task. However, these awards have supported Yolia to achieve national and international recognition. Since then, we have been invited to present at several investor conferences and establish world-class strategic partnerships. One of our most recent R&D partnerships was with The Tsubota-Lab in Japan. This partnership will allow us to further develop both our presbyopia and myopia vision correction technologies and to export our products to Asia. Being successful is not easy; it requires a lot of teamwork. This would not be possible without the incredible relationships Yolia has locally in Arizona. In our case, both BioAccel and the Arizona Commerce Authority have been the true springboard Yolia needed to accelerate its growth. We know success is not a journey but a destination, therefore we continue to work harder to achieve our goal to develop non-invasive vision correction technologies.

Agave Semiconductor agavesemi.com

For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.

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ALBERTO OSIO

Robert Brannen, Ph.D., founded Agave Semiconductor to make integrated circuits that improve the energy efficiency of electric motors. He has spent 15 years in the semiconductor industry. He holds a doctorate in electrical engineering from Ohio State University and a bachelor’s degree in electrical engineering from the University of Nebraska. Dr. Brannen currently holds 12 United States patents in the areas of analog circuit design and motor control.

Colnatec colnatec.com Wendy Jameson is CEO and co-founder of Colnatec, a nanotechnology sensor manufacturer in Gilbert. She has been recognized as a “Champion of Change” by the White House and was named a “Tech Titan” by the Phoenix Business Journal. She serves on several boards and is an avid promoter of STEM education.

Yolia Health yolia.com Alberto Osio first conceived of Yolia while earning an MBA at MIT’s Sloan School of Management. While still a student, he raised more than $1 million in seed capital for his firm, Yolia Health, an ophthalmic bio-med company that developed the first non-invasive treatment to correct vision problems like presbyopia or vision fatigue. Osio was recently named among Mexico’s Top 10 Entrepreneurs by CNN Expansion and, in Arizona, Innovator of the Year at the 2013 Governor’s Celebration of Innovation.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.

QUICK AND TO THE POINT

BYTES

BY MIKE HUNTER

The Wrike Place Project management has a new friend. The Wrike app is an allencompassing way to organize in one spot everything needed to complete a project. Break large goals into manageable pieces, attach files and set due dates. Easily track overall progress and individual contribution. Wrike lets users communicate with teammates to share tasks — even with people outside the company. Excel, Word, Google drive — Wrike integrates with pretty much everything so users can access all of their business tools in one place. wrike.com

Work simply. Work securely. From LogMeIn, Inc., the new Cubby allows individuals, teams and entire workplaces to easily and securely work together, anywhere. Files are stored in the cloud for anywhere access, shared with others publicly or privately, or even directly synced between devices without using the cloud. And to keep company data secure, Cubby helps IT easily manage users, policies and devices from one central location. cubby.com

Truly Going Digital Capturx Software from Adapx speeds data capture and collaboration by turning natural speech, sketch and handwriting into actionable data in Microsoft Office, SharePoint, CRM, ERP, GIS, C2, C4ISR systems and many other back-end systems. Simply by speaking and writing, teams get instant access to structured data collected on paper, touchscreens, mobile devices and wall displays. Adapx has strategic relationships with Microsoft, ESRI and In-Q-Tel, and works with standard digital pen technology from Anoto. adapx.com

High-Performance Building Is New Home for Manufacturer

At 163,420 square feet, CornellCookson’s new facility in Goodyear does more than just double the space the company has been operating out of in Phoenix for 25 years. Among its advantages, it streamlines the work flow for the company’s manufacture of custom closure solutions — such as the rolling doors and grilles used at stadiums, hospitals and other secure facilities — and adds a stateof-the-art multi-use presentation room. The company plans to transfer some of its East Coast production here to satisfy West Coast dealers, who have been experiencing slightly longer lead time due to shipping from the East Coast, according to Kay Devlin, director of marketing communications. And a significant improvement is the streamlining of production lines. Noting the company’s growth over the 25 years in the old facility, Devlin says, “We evolved new products and had to find a spot for it.” So production areas ended up a patchwork of cramped squares, with no correlation between incoming raw goods and finished product. “Now, it’s easier to understand what goes where; it’s easier to bring in parts, raw materials.” There’s a more logical flow that ultimately moves the finished product straight

off the line and out the door onto loading docks. The high-performance building, designed by Jones Studio of Phoenix, includes many sustainability features: roof orientation that provides potential for a roof-mounted photovoltaic system, north-facing clerestory windows that optimize natural light, and 11 harvesting tanks to collect rainwater that will be used to irrigate indigenous desert plants across the site through the dry months. Sky lights and landscaped employee courtyards incorporate the beauty of the Arizona landscape. A highlight of the new facility is the audiovisual room. Large enough to accommodate 75 with desks and more with just chairs, it enables CornellCookson to offer more training sessions for its dealers and be able to showcase all the products. This is a vast improvement over being able to take just a few product samples out to the dealers, Devlin says, noting the size of the products. “And if there is an issue in the field, we could send the dealer out and, using Skype or FaceTime, connect with the representative in the field onto the [room’s] big screen, and —RaeAnne Marsh troubleshoot.” CornellCookson cornellcookson.com

VISUALIZE

Get on the Right Page Increasing use of mobile and online tools by consumers means buyer preferences are constantly changing. To keep up, reps are spending an average of 50 percent of their time sifting through department data to find the right info to reach the right target. A new survey by Televerde shows that Photo courtesy of CornellCookson

60 percent of sales and marketing departments are not on the same page on customer engagement strategies, despite the fact that 70 percent say interdepartmental communication about customer engagement is very important. televerde.com

According to the most recent figures from the Arizona Commerce Authority, manufactured goods accounted for more than 80 percent of Arizona’s $18.4 billion in exports for 2012.

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INNOVATIONS FOR BUSINESS

TECH NOTES

IT Staff in Demand The unemployment rate in Phoenix for IT professionals is half the general unemployment rate. That shortage of talent makes for a very competitive market, and therefore, observes Allan Dunn, managing director of the Phoenix office of IT staffing agency MDI Group, “Businesses must be willing to pay above the median rate based on a skill set.” There is non-salary compensation employers can offer, however, that is meaningful to this population. Two benefits that appeal to them are flexible work hours and an option to telecommute at least part time, according to Dunn. Also, he says, “They have a desire to work on the latest technology that’s out there in a company that offers the opportunity to participate in ongoing training, whether it leads to certification or just keeps their skills current.” mdigroup.com

Communication Control Consumers “have little control over their messages thanks to autocorrecting tools and the lack of ability to easily fix errors leading to miscommunication,” says Kevin Wooten, reTXT Labs co-founder and CEO. His Tempe-based company’s recently launched app (patent pending) puts users in control of their text conversations by enabling them to edit previously sent messages and to opt in and out of group messages. retxt.com

BY RAEANNE MARSH

Secure Against Internal as well as External Breaches

Diligence against cyber security breaches is as much an issue of internal processes as external threats. In fact, the breach Home Depot so publicly suffered last year was enabled through a pfishing scheme whereby hackers first gained access to a third-party vendor that had access privileges with Home Depot. In the recent survey “Privilege Gone Wild 2” by global cyber security company BeyondTrust, 47 percent of respondents admitted they have employees who possess elevated rights they don’t need to do their job, and more than one out of four companies indicated they have no controls in place to manage privileged access. The 2014 Verizon Data Breach Investigations Report identifies the use of stolen credentials as the most common source of attack. Also, malicious insiders with elevated privileges may leverage the opportunity to share or steal sensitive data. And inadvertent abuse is another concern, as employees with elevated privileges may not only access sensitive data simply out of curiosity but may move data to unauthorized cloud storage or install unauthorized software such as file-sharing applications, thus putting data at risk. However, it is important that companies enable the end-user to be productive. Privileged account management (PAM) looks at two aspects of privilege: the privileged user and the privileged account itself. Individuals tasked with managing critical systems, such as IT and application administrators, must have elevated rights and credentials to perform super-user activities. And

there are devices or systems that are shared among multiple users and whose passwords, therefore, are broadly known. “It’s important to continually scan for vulnerability in what the organization does, such as staying current with patches. And on the user side, use the principle of least privilege — reduce access to the lowest possible to allow the job to be done,” says Scott Lang, director of privileged strategies at BeyondTrust, explaining BeyondTrust provides solutions that reveal critical risks hidden within volumes of user as well as system data. This includes scanning individuals’ mobile devices connected to a network, Lang says, although noting the Verizon report confirms that mobility is not the attack surface it was once considered to be. He advises businesses to not look at a problem in a silo, but to look at the entire environment — of access to servers, desktops and systems; how many systems users have to log into; and auditing and reporting requirements. BeyondTrust beyondtrust.com

Securing Mobile Financial Access

Working with financial institutions to provide risk management solutions against the constant evolution of threats, Early Warning is building an ecosystem that will continue to match up with the threat over time. With no direct link itself to the end user, Early Warning’s strategy is collaboration among companies with their own expertise and a consortium model in sharing data among participating financial services organizations (FSOs). Early Warning announced a strategic alliance in April with BioCatch, a global leader in behavioral biometrics, authentication and malware detection. This enables the FSOs to gain and share behavioral intelligence to improve visibility of digital threats to reduce new account fraud

JUNE 20 1 5

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and account takeover while simultaneously improving their users’ experience. In fact, Early Warning CEO Kyle Thomas emphasizes that the efforts are “more about making life easier to the good people, and not just about catching the bad people. The goal is to make the experience better for the end-user in a secure atmosphere.” This recognizes that security must also consider the spectrum of risk. At one end might be a user wanting to simply look at his or her account balance, whereas a wire transfer of a large sum of money involves greater risk. “We can lock it down so much that no one can get in — including the user,” Thomas says. Security today requires a layered approach rather than a single way for a user to access his

account. To facilitate that, Early Warning has also acquired Authentify, Inc. Thomas explains that Authentify’s platform contains application programming interfaces that enable many authenticators to be plugged into it. One type of authenticator is physical, such as a thumbprint, photo or retinal scan. There is also behavioral tracking and actual access. Says Thomas, “We can find out if the phone being used is registered with the person right now, then look at, ‘Is he or she holding it in the same way they usually do and are they going through a pattern of behavior consistent with their person?’” Early Warning earlywarning.com

As newer software platforms continue to make older ones obsolete, businesses should note that, according to the U.S. Department of Homeland Security, computer systems running unsupported software are exposed to elevated cybersecurity risks such as malicious attacks or electronic data loss.

BY RAEANNE MARSH

WELL WELL WELL

More Doctor Time Medical Scribes The push for healthcare providers to adopt electronic health records (EHRs) has fostered the growth of medical scribes as a supporting profession to relieve doctors of the time-consuming task of entering the comprehensive medical documentation EHRs require. Essentially handling data management tasks, a medical scribe charts the doctor’s patient encounters throughout his or her work day.

Medical Coders A leading company in that realm, ScribeAmerica, is also addressing another time-consuming task: medical coding. CLEAR Summit, recently launched as a collaboration between leading medical coding and compliance company Edelberg & Associates and ScribeAmerica, is the healthcare industry’s first integrated software solution that uses real-time interaction to link scribes, medical coders and clinical personnel. It leverages advancements that have occurred from the implementation of EHRs to facilitate instant live feedback and workflow between the scribe and coder as the medical record develops in real-time to address issues immediately.

Time and Money Reducing the amount of time doctors must spend on paperwork gives them more time for patients. Plus, from an office standpoint, there is improved reimbursement. “Previously, the time gap that existed between providing clinical care to the final bill being submitted was between six to ten days or often longer, depending on the availability of providers to complete records,” says Caral Edelberg, CEO of Edelberg & Associates, noting such inefficiency costs healthcare systems millions of dollars annually. Edelberg & Associates edelbergcodes.com ScribeAmerica scribeamerica.com

YOUR BENEFIT IN BUSINESS

Crowdfunding Answers Medical Need

Hospitals and nonprofits have begun expanding their fundraising efforts beyond the traditional reliance on a board of directors out to the wider reach of the Internet. But medical crowdfunding is taking another direction as well. “There is a major growing trend of people using the Internet to raise money for medical events,” says Frutkin Law Firm founder Jonathan Frutkin, a local attorney recognized nationally for his expertise in crowdfunding and author of Equity Crowdfunding: Transforming Customers into Loyal Owners. Describing it as a natural extension of social media, Frutkin notes, “Almost all medical crowdfunding is done by someone close to the family. Their reason for giving is, they know the person.” Very little of the money, however, goes to actual medical bills. While most people have insurance for the medical treatments, Frutkin observes, major medical catastrophes affect everything else. For instance, they no longer have income to pay the mortgage, or may be

suffering Stage 4 cancer and want their children to fly out for a last visit. “The perception is, it’s used for medical expenses, but the reality is, it is mostly used for living expenses when a medical catastrophe happens,” Frutkin says. Individual crowdfunding is unlikely to have a tax consequence. It is classified as a gift, which, unless it’s a large amount, is not included as either income or deduction, Frutkin explains. This is unlike medical crowdfunding donations to nonprofit organizations, which donors expect to claim as a tax deduction and which therefore requires that the organization have proper taxexempt certification. —RaeAnne Marsh

3-D Print for Medical Use 3-D printing is making a big impact in medical applications. Not that the technology is new — W. L. Gore & Associates, Inc., among others, has been using 3-D printing for decades. It was used to make models and prototypes, says Eric Miller, principal and co-owner of Phoenix Analysis & Design Technologies, which provides 3-D printers and 3-D printing services and is working with the Center for Entrepreneurial Innovation in its recently launched maker lab. “What’s changed is, they can make parts they use for clinical testing.” It’s a tremendous advantage in research. Whereas, in the past, creating a physical iteration of something required finding someone to design it and make it work, “Now you just print it,” Miller says. And if a problem were discovered with the design, it meant starting over to work with someone to design and manufacture. And most manufacturing processes are optimized to make multiple copies. 3-D printing is inherently custom, so there’s no difference in cost to produce an item for individual patient, Miller points out, noting also that 3-D printing enables the manufacture of shapes that cannot be made with traditional manufacturing. The U.S. Food and Drug Administration is accepting parts made with a 3-D printer, so

medical devices can now be certified with 3-D-printed components. To be OK’d for use in the human body, a material must be certified to not be toxic, not cause other reactions, and be able to be sterilized without destroying its properties. Mayo Clinic Orthopedic Surgery in Arizona has been using its device for custom-designed implants since mid-2012; colleagues at Mayo Clinic in Rochester, Minn., were using it for several years prior. Orthopedic surgeon Christopher Beauchamp explains they make a model and do a practice run with it, which increases accuracy during the real surgery, and then send the model of the patient’s joint to a manufacturer to make the custom implant. Mayo Clinic spokesperson James McVeigh says other uses in other medical and surgical specialties are evolving. “Ten to 15 percent of our sales and services is in medical 3-D printing, and we expect it to grow faster now, with metal an approved material,” Miller says, explaining there are many applications, such as artificial hips, for which plastic is not strong enough. —RaeAnne Marsh Center for Entrepreneurial Innovation ceigateway.com Mayo mayoclinic.org Phoenix Analysis & Design Technologies padtinc.com

The process for making Invisalign braces uses 3-D printing. A more recent application enables doctors to grow ears for patients by 3-D printing cartilage straight from a CAT scan and putting stem cells on that print.

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METRICS & MEASUREMENTS

Small Business Wins Big with Arizona Consumers Survey shows why Arizona consumers like to buy local by Ellen Joyce Conroy

THE POLITICAL SPLIT Unlike national respondents, Arizona respondents were about evenly split when asked which political party does more to support small business growth: 35% Democratic (compared to 41% Democrat in national sample) 34% Independent (compared to 27% Independent in national sample) 31% Republican (compared to 32% Republican in national sample)

Arizonans have embraced the national trend of patronizing small businesses in overwhelming numbers. Eighty-eight percent of Arizona consumers support small businesses in their communities by buying small at least once a week, and 64 percent buy small two or more times a week, according to the 2015 Cox Consumer Pulse on Small Businesses. For the third year in a row, Cox Business conducted a survey of small business to better understand the technology tools they need to engage consumers, deliver high levels of service and strengthen Arizona communities through job creation. Nearly 1,400 American consumers across eight states, including Arizona, gave their reasons for shopping small. With 157 Arizona respondents, the survey shows the reasons why Arizona consumers find it important to buy local. The familiarity, engagement and convenience of smallbusiness owners and employees are what Arizonans enjoy about shopping small. Fifty-four percent of Arizona consumers believe that small businesses deliver better customer service than larger companies. When asked how small-business owners can improve the customer experience, offering frequent shopper and loyalty programs ranked highest among Arizonans consumers, followed by offering more competitive pricing and expanding the hours of operation. The survey also found that many respondents believe Wi-Fi service, such as Cox Business Guest Wi-Fi, improves the customer experience, and patrons of businesses are coming to expect access to free and fast Internet service when they are shopping. The economic impact of buying small can be measured in real dollars. According to the Andersonville Study of Retail Economics, for every $100 that is spent locally, $68 stays in the

JUNE 20 1 5

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Cox Business coxblue.com

Arizonans Support Small Business When asked which small businesses they support on a regular basis, Arizonans said: Restaurants

77%

Repair and maintenance (general automotive repair, oil change shops)

60%

Healthcare services (physicians, dentists, chiropractors)

57%

Personal and laundry services (barbershops, beauty salons, nail salons)

53%

Miscellaneous retailers (florists, pet supplies, novelty shops)

51%

Building material/supply dealers Ellen Joyce Conroy is a manager with Cox Business specializing in business-to-business communication and small business growth.

communityâ&#x20AC;&#x2122;s economy. This cash circulation spurs job creation and strengthens the overall infrastructure of local economies. Shopping small doesnâ&#x20AC;&#x2122;t just help the economy; it strengthens the community as a whole. Arizonans said that teaching youth the importance of entrepreneurship and how to run oneâ&#x20AC;&#x2122;s own business is important. When asked if K-12 curriculum should include entrepreneurship and small business ownership, 83 percent of respondents said yes. Arizona respondents also believe this curriculum should begin in elementary school, with a larger number of national respondents selecting high school as the ideal time. Despite the considerable support from community members, small businesses need more support from the government, Arizonans said. Consumer feedback was negative when asked if the government is doing its fair share to help small businesses; 74 percent said not enough from the local government and 78 percent said not enough from the federal government.

Clothing and clothing accessories stores

When looking at all the ways small businesses can improve the customer experience, Arizonans said:

39% 34% (4 percent more than the national average)

Offer frequent shopper/loyalty programs

54%

Offer more competitive pricing

53%

Expand their hours of operation

31%

Broaden their offerings

25%

Offer free Wi-Fi

19%

Offer e-commerce capabilities

13%

Health and personal care stores (beauty supply, pharmacies)

31%

Hire more employees

11%

Professional and technical services (lawyers, realtors, CPAs)

28%

Offer more payment options (mobile)

10%

Source: 2015 Cox Business Consumer Sentiment Survey on Small Business

Wist-ful Results In a 2007 study commissioned by Local First Arizona, economic analysts at Civic Economics compared the economic impact of local versus national suppliers of office products. They found that 33.4 percent of local revenue at Wist remains in the local economy and 11.6 percent of local revenue at Office Max Contract remains in the local economy.

MINDING THEIR BUSINESS

Blue Sky Pest Control: Building Strength from Small Decisions

Co-founders Curtis Whalen and Nathan Woolf encourage employee initiative by Alexandra Lyon The creepy-crawlies of the Arizona desert are no match for Curtis Whalen and Nathan Woolf, owners of Blue Sky Pest Control. The Phoenix-based company has experienced aggressive growth since opening its first office in the Phoenix metropolitan area in 2003, and now has more than 65 employees and a second location in Gilbert. This growth advanced even during the economic recession that hit at the end of 2007, enabling the company to continue to operate without having to lay off any of its employees. Whalen credits Blue Sky’s extensive hiring process. “Our thoughts are that if you hire the right people, they will want to do well — which is why we take the time to perform indepth examinations,” he says. In addition to the interview, the process includes a background check, drug-screening, two or three subsequent interviews, and a personality assessment. Spending a substantial amount of time on finding the right people, Whalen believes, helps ensure new hires fit the Blue Sky culture of integrity, honesty, providing great service and being passionate about taking care of the customer. To maintain the high-quality of service needed to grow their company, Whalen and Woolf have implemented a specific training regimen. Woolf was the assistant product manager at FranklinCovey for The 7 Habits of Highly Effective People — a book that was groundbreaking in 1989 and has remained a bestseller — and his experience with the concepts gives him a unique edge in training the Blue Sky Pest Control team. Each employee is given a copy of the book, and Woolf works with one department at a time, meeting with the team members each week to review initial training material, reinforce their knowledge and sharpen their skills. “It is not just talking about [the book] but walking and training people through it and how to implement [the methods] effectively,” he says. It is more than just a token slogan on the wall, Woolf notes, but a focused effort to make it a part of the company’s DNA.

Photos courtesy of Blue Sky Pest Control

Nathan Woolf

Curtis Whalen

“You are only as strong as everyone on your team,” says Whalen. “If they don’t know how they are doing or what success looks like within the company, we have to be transparent in providing feedback.” In that regard, Whalen feels that a significant part of Blue Sky’s success lies in team communication. An innovative approach Whalen and Woolf employ is to give each employee a report card twice a month that analyzes his or her service, focusing on what that employee does exceptionally well and identifying areas that need improvement. Some of the areas measured are application of skills and customer satisfaction. As a coach, Whalen says, he can focus a lot on the positive and appreciation for his team while also being straightforward about areas that need work. A direct and honest approach is the key to establishing solid relationships and offering helpful feedback that ultimately helps the entire team, he notes. In utilizing this hands-on approach, Whalen believes he can help his team build integrity by inspiring them to perform quality work and make decisions “for the betterment of the customer.” Observing that it’s very easy for workers to want to do the bare minimum when they go to a customer’s home, Woolf relates many of his employees will perform small duties they doubt the customer will even notice, like spraying something extra or cleaning something out. To encourage this level of employees going above and beyond what they initially came out to do, Whalen and Woolf empower their employees to make decisions they enjoy doing and feel good about. It is not a single isolated action that makes the difference; rather; it’s the cumulative effect of the many small decisions people make as they go about their work. “We talk about culture a lot here,” says Woolf, “because culture ultimately affects peoples’ behavior when they are making thousands and thousands of little decisions a day.” Blue Sky Pest Control blueskypest.com

Because termites thrive in warm climates, Arizona is especially high in termite activity. According to a popular adage, there are two kinds of homes here — those that have termites and those that are going to get them.

PEST SMART • The website Angie’s List has awarded Blue Sky Pest Control the “Super Service Award” five years in a row. • Curtis Whalen first got into the pest management industry to put himself through college. He co-founded Berrett Pest Control in Dallas and built it into a successful company with multiple locations before co-founding Blue Sky. • Whalen’s interest in pest control was piqued by learning that fear of bugs is the No. 2 fear, topped only by fear of public speaking. • The services of Blue Sky have enabled several restaurants and food-processing facilities become USDA organic certified.

JUNE 20 1 5

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LAW MATTERS TO BUSINESS

Intellectual Property Is Not Created Equal Different types have different rights and need different ways to be protected by RaeAnne Marsh Flavia Campbell is a partner with Lewis Roca Rothgerber who assists clients with the selection, clearance, prosecution and enforcement of trademark rights in the U.S. and abroad.

Lee Fraley is a partner with Snell & Wilmer who offers clients a unique blend of intellectual property counseling, IP rights enforcement and defense, as well as aggressive negotiation of IP-related transactions and acquisitions.

Shane Olafson is a partner with Lewis Roca Rothgerber who focuses on intellectual property litigation and counseling, as well as data privacy and cybersecurity.

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Business owners tend to underestimate their intellectual property (IP), says Lee Fraley, a partner in the Phoenix office of law firm Snell & Wilmer who specializes in IP and works with many emerging businesses in acquisitions and related transactions. “They tend to think IP only includes patents, but it’s much more than that — it’s almost anything that gives a company a competitive advantage.” According to Shane Olafson, a partner in the law firm Lewis Roca Rothgerber whose practice focuses on intellectual property, there are four primary types of IP protection: patents, trade secrets, trademarks and copyrights. Patents and trade secrets protect things that have practical use, such as inventions or formulas. Trademarks help consumers identify goods or services with a particular source (e.g., your company). And copyrights protect creative expression and software. A patent is a governmental grant of exclusive rights to an inventor for 20 years, in exchange for expressly describing the invention in sufficient detail that others could practice the invention once the patent expires. Once a patent issues, the inventor may prevent others from making, using, selling, offering for sale, or importing the claimed invention until the patent expires. A trade secret, such as the formula for Coca Cola, is the polar opposite — it is kept secret from everyone except those who need to know. “Some things are not well-suited for patents, such as technologies that have a very short shelf life,” Olafson says. “Because it can take a few years to obtain a patent, it wouldn’t make sense to spend money obtaining a patent on something that will be obsolete by the time the patent issues.” Similarly, some things are not well-suited for trade secrets, for instance anything that can be reverse-engineered. According to Olafson, “most trade secret laws only preclude others from using a trade secret that was obtained unlawfully, such as by theft or espionage.” A trademark is the name a company gives a product or service so customers can differentiate the product or service from those offered by competitors, explains Flavia Campbell, an IP attorney who also practices at Lewis Roca Rothgerber. Although registration is not required, trademarks can be

registered at both the state and federal level. A business owner may choose to not register a trademark, but, she says, “even if a brand owner is not worried about securing exclusive rights for herself, she needs to be sure she’s not infringing upon someone else’s trademark rights.” A trademark can be any name, logo or tagline, and is an important asset. But Fraley cautions care in selecting the mark. “If it’s too descriptive, it may be difficult to register, at least initially — and just as difficult to keep others from using the descriptive terms.” Names that are suggestive, on the other hand — such as Greyhound and Coppertone — are easier to protect. “They are more distinctive, easier to register, less likely to find in conflict with another, and easier to enforce if someone imitates you.” Fanciful or arbitrary names, such as Apple for computers, are even more distinctive and strong — but require more promotion to connect the company with the consumer. Once a trademark is established, Fraley emphasizes it is important to maintain appropriate use of it to not weaken trademark rights and significance. Businesses should not use it in descriptive or generic fashion, abbreviate or hyphenate it. They do need to be consistent in its spelling. “You don’t want it to become a household name,” he says, pointing out that “aspirin” was once a distinctive trademark that became generic and free to use by others. Rights pertaining the fourth type of intellectual property — copyright — are widely misunderstood. “The author of the work is deemed the owner, and you don’t necessarily own it just because you paid for it,” Fraley notes. See this article on our website for a more full discussion from Campbell, Fraley and Olafson on the rights and limitations of copyright. Correcting ownership issues ahead of time avoids the potential for someone to hold ownership rights as leverage against a business when acquiring. Businesses may find it beneficial to do an intellectual property audit “to be sure you actually own what you think you own,” Fraley says. Lewis Roca Rothgerber, L.L.P. lrrlaw.com Snell & Wilmer swlaw.com

As part of establishing their trademark, businesses should check for domain names that are available, and secure reasonable variations — including Web extensions — and make sure the domain names are registered by the company, not a person. Note, however, that simply registering the domain name reserves its place on the Web but does not give exclusive rights to the name.

Arizona Business is Our Business.â&#x201E;˘ Representing our Business Practice (l-r): Brian Zavislak, Jon Hasebe, Julie Rystad, Josh Becker, Terry Thompson, Dan DeChesaro, Alicia Corbett, Jim Connor, Steve Boatwright, Ryan Opel

To be the best at our business, we take the time to understand yours. We use the same sound business practices that you use in your business, and never take the trust you place in us for granted.

Our Services Include:

Lawyers. When Results Matter.

Tech Sectors The technology advantage, sustaining Arizonaâ&#x20AC;&#x2122;s economy by RaeAnne Marsh

Reaching out to leading Arizona companies for insights into their respective fields, In Business Magazine presents an overview of the economic sector the state is counting on to sustain Arizona into the future. Jobs in the technology sector are among the best-paying, and therefore help to raise the economy generally. There is also a multiplier effect, as each single technology-sector job creates more than four jobs in the broader community. Creating the jobs and the work force to fill them, then, has become an important focus of economic development from the local to the statewide level. But “technology” is a broadly inclusive label. Within the wide realm of technology are several distinct segments. Although needs, challenges and even resources may overlap, each is a unique economic force.

INFORMATION TECHNOLOGY AXOSOFT “Software is just beginning to show its potential,” says Lawdan Shojaee, CEO of Axosoft. For the next generation of kids coming out of school, she points out, software is all they know — everything they touch, everything they do is based on software. So, “Everything they’re going to innovate with has technology already in it. I think we’re going to have another explosion coming up that’s just amazing innovation.” Shojaee foresees grand achievements — but not where they’re visible to the eye. “We’re going to use those technologies to cure diseases and build new and amazing things,” she enthuses. Pointing to the grand edifices of skyscrapers and bridges constructed by previous generations, she says it may seem that nothing of that scale is being created now. “Yet we are doing them — we’re just doing it in bits and pieces in the cloud.” Involved in the industry for two decades, Shojaee says she and her husband, Axosoft founder Hamid Shojaee, have seen tremendous growth in the local tech ecosystem — to where, now, “Everywhere you go on the Loop 101, from the Southeast Valley north, there’s a huge company.” And the cluster of technology companies is producing a positive synergy. The effect of multiple companies looking for a certain skill or talent, she points out, is the creation of better talent as the work force responds to opportunity. The impact extends to supporting businesses as well, as tech and nontech suppliers alike up their game, too, to serve their customers. Shojaee relates that Axosoft had been working with a local office supplies company to meet a need that was outside the needs of a typical office. “They went back to the drawing board and changed the way they do business so they could provide services to companies like us better and more efficiently.” Availability of talent is a topic that touches what Shojaee says is “a pet peeve of mine” — that there is not enough talent here. It’s not a matter of too few being trained, she believes, crediting the schools with producing well-qualified talent. The problem is they leave because they don’t know about the thriving tech ecosystem in Arizona; that there is a lot of employment opportunity. “If I could hire 20 more today, I would, and we would grow faster,” Shojaee says, relating the company currently employs 42. “And I know my other CEO friends feel the same.” Access to capital is another challenge Shojaee sees. In her experience, investors here are not as aware of technology companies as she feels they should be, and are not able to evaluate them as accurately as they could other types of businesses in the Valley. “Therefore, bringing investors from outside the country is very beneficial, and educating inside investors,” she says. At the same time, Shojaee believes new companies are finding it easier now to get funding than 10 or even five years ago. “We have startup pitches, and investors coming and looking at them,” she says. And those already in the industry are lending a helping hand, too, with CEOs becoming mentors to new startups.

JUNE 2015

BIOSCIENCES – TRANSLATIONAL GENOMICS RESEARCH INSTITUTE (TGEN) A major force in Arizona’s biosciences sector since it was persuaded to establish itself in Phoenix in 2002, TGen has helped pioneer the translational approach to bioscience research — which is to take knowledge learned through research into DNA and apply it to the clinic. “We’re techno-agnostic,” says Tess Burleson, chief operating officer. “We try to improve the outcome for patients.” Medicine is not currently practiced by understanding the molecular reason for things, she explains, and yet each person has his or her own blueprint. “We try to find out what is specific to this individual that’s driving disease, rather than treating symptoms in a one-size-fits-all way.” Burleson sees a lot of growth in this segment due to need in the market, which, in turn, is being driven by changes in the healthcare space. Advances translate to better care, and also to lower cost and more revenue. From the cost-avoidance perspective, she explains, more targeted care for an individual helps avoid the cost of inappropriate or ineffective medicines. And from a revenue-generation standpoint, Burleson points to the opportunity to raise revenue through health tourism. “People go where the best care is,” she says. TGen’s focus is to figure out what tools are best and which capabilities help drug development in targeted therapeutic arenas, testing out different technologies and capabilities, and along with that is the developing of methods, software, processes and algorithms to apply that knowledge to better patient care. In the 13 years since the institute became operational, TGen has spun off 16 companies, and Burleson says a few more are nearly at that point now.

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Noting the bioscience industry is competitive in some ways and cooperative in others, Burleson says Arizona is a very collaborative environment. “In not many places in the country are they so willing to work together where there is opportunity for all ships to rise.” While precision medicine is a growing field, funding for basic science and research is a challenge. Pointing out that TGen is a nonprofit, Burleson says it is opportunities for commercialization that gain access to capital. But she believes ongoing investment is necessary. “Arizona has been a leader in the life sciences space based on its investment in this space,” she says, “and there is opportunity to capitalize on that if we can stay focused on making sure everybody in the research community in Arizona — TGen, the universities, private groups doing clinical research — has a shot at it.” About 80 percent of TGen’s work force hold advanced degrees, and Burleson estimates 26 percent of them are from Arizona universities. “We try to encourage interest in those types of careers through internships with TGen,” she says, crediting the effort also with helping retain the Arizona-educated knowledge-based work force in the state.

TELECOMMUNICATIONS CENTURYLINK “The [technology] sector is changing drastically,” says Ken McMahon, CenturyLink’s vice president of Sales for the Mountain West Region. Pointing to the impact of Uber — disrupting an entire industry not through any change in the core customer need but by developing an application that enables a person to use an iPhone to compare wait times when calling for a ride — McMahon says customers, chief marketing officers and other business units are starting to make similar demands of their IT organization. And they are doing this while also trying to keep up with the day-to-day demands of keeping their current network architecture running to support their business. McMahon says he is seeing a flood of digital application requests from businesses’ marketing and other divisions to help the company drive revenue or reduce operating costs, and, therefore, “we’re seeing a significant amount of growth within our industry.” But he notes that technology changes very quickly, “so we are consistently re-evaluating the products and services available in our portfolio, and adjusting based on feedback from customers and what we’re hearing from industry analysts.” This requires maintaining a constant link with customers and being highly engaged with those companies regarded as industry experts to help predict what’s coming next. Types of telecommunications/IT support businesses are looking for include cyber connectivity, hosting, colocation, cloud IT capabilities and complete end-to-end managed services. Some IT organizations within businesses shift all of this to telecommunications companies like CenturyLink, McMahon says, while others keep some functions in-house and onsite.

McMahon believes his company has an edge in its sector because it is able to combine its nationwide network, hosting and IT services capability into what he describes as “an end-to-end product, service and managed service solution for businesses of all sizes.” He points also to acquisitions, investments and strategic focus. For instance, he says, “We were hearing from customers that they had terabytes of data but were not able to analyze the data to drive business decisions. So we acquired Cognilytics in 4th quarter of 2014 rather than develop it ourselves.” For CenturyLink, being able to expand aggressively in the sector was facilitated by being able to leverage its capability to connect customers with their data center with CenturyLink’s core network. Says McMahon, “Our core asset allowed us to enter this industry easier than others.” For further advancing, he relates the company is bringing to the smallbusiness customer “our expertise in supporting Fortune 500 companies and learning what they are doing to drive incremental revenue, drive customers to applications as well as reduce operating costs — and, at the same time, remaining secure.” Arizona has a competitive technology ecosystem, says McMahon, pointing to a strong cluster of technology companies that are either growing here or moving operations here. Advantages include the area’s low risk of catastrophic events such as hurricanes or earthquakes and its predictable climate, which have made it a popular location for data centers. Also, McMahon says, “Modestly priced energy and government tax incentives are relatively well-positioned here.” A challenge McMahon sees to the industry is in the work force. While a work force exists to meet current needs, he says, “I’m not sure we’re going to be able to accelerate our ready-workforce environment at the same rate that technology’s changing.” He sees the need growing also as more companies choose Arizona as their headquarters or regional headquarters. “It’s vital that higher education focus on STEM-related fields so we can have a stronger work force in Arizona.”

Pointing out the bioscience industry is competitive in some ways and cooperative in others, Burleson says Arizona is a very collaborative environment. “In not many places in the country are they so willing to work together where there is opportunity for all ships to rise.” INBUSINESSMAG.COM

JUNE 2015

ENERGY ARIZONA PUBLIC SERVICE (APS) “Arizona is moving to flexible resources,” says Jasdeep Singh, manager of APS’s Smart Grid, naming solar as one type. Such development will entail changes in the delivery systems, and Singh says APS is looking into technologies around energy storage and micro-grids to support those flexible resources. Currently, however, technology advancements are primarily on the distribution side, to make the grid more flexible and advanced in the future. This requires advanced metering infrastructure. Distributed energy from solar and other sources impacts the transfer on the energy grid from one-way flow to two-way flow, Singh says, explaining this creates a challenge to maintain reliability. Another metering challenge comes from Arizona’s transient population, with a heavy influx of people whose winter residence is here. Energy utilities have to support their grid changes, Singh explains. Another aspect involves fault communication indicators. Technicians used to have to actually walk the line, but technology now enables APS to pinpoint the fault and send a technician directly to that location.

APS is now putting into place an Advanced Distribution Management System (ADM). Referring to this as “a huge undertaking,” Singh explains, “This will be the brains behind our operations center.” All the information from the smart meters, fault communicators, automated switches and other technologies will be sent to the ADM. “We’ll have one single system to have eyes and ears on the distribution grid, and operate it from the computer terminals in one central location.” Says Singh, “The most important areas of technology to focus on are how to get more visibility and automation on a grid, and how technologies come together and integrate.” A big challenge in his realm is the work force. “Power engineering is not a common major,” Singh says, noting students are gravitating to computer science and business-related degrees. Compounding the situation for APS, one of the state’s oldest and largest employers, is its aging work force comprised heavily of retirement-ready baby boomers. To address this, APS helps support vocational engineering programs. Local utility companies are also being impacted by Arizona’s stagnating population growth. Few Arizona cities made the U.S. Census Bureau’s list of fastest-growing large cities (Goodyear, No. 6, and Gilbert, No. 12). Says Singh, “This affects us from a growth standpoint and impacts our ability to invest in infrastructure.”

AEROSPACE AND AVIATION THE BOEING COMPANY Aerospace and aviation have been a staple of Arizona’s economy, with aerospace and defense companies here numbering greater than 1,000. The Arizona Commerce Authority estimates this industry’s annual economic impact at $15 billion. With sequestration cutting into Defense contracts, companies are putting greater emphasis on commercial aviation, including development of unmanned aircraft systems (drones), for which applications and regulation are still evolving. Companies like Boeing have been answering a pent-up demand from airline companies that had, during the Great Recession, held off on replacing aging equipment. Challenges in addition to a constrained Defense budget, according to a Boeing spokesperson, include fierce global competition as international competition emerges on the commercial side, and the threat to the reauthorization of the United States’ Export-Import Bank, which places commercial international sales at a critical disadvantage. Boeing is recognized as the world’s leading manufacturer of commercial jetliners and defense, space and security systems. In Arizona, its core business areas operate in Mesa and Chandler, and employ a skilled work force of approximately 4,670. The greatest percentage of these employees work on the production of Boeing’s Apache helicopters at its

“Arizona is moving to flexible resources,” says Jasdeep Singh, manager of APS’s Smart Grid, naming solar as one type. Such development will entail changes in the delivery systems, and Singh says APS is looking into technologies around energy storage and micro-grids to support those flexible resources.

JUNE 2015

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“Entrepreneurs often end up going to California to seek venture funding. That scenario does not allow a vibrant VC funding community, nor high-quality funding ideas, to develop here.” —Steve Sanghi, Microchip Technology Mesa site — one of the world’s leading producers of military rotocraft. The AH-64 Apache multi-mission combat helicopter has been designed, developed and produced there since 1982. Boeing sees military rotocraft as an area of growth, and, according to a Boeing spokesperson, the site developed the AH-6i Light Attack/Reconnaissance helicopter and expects to begin production this year for the aircraft’s first international customer. Other technology being advanced in Arizona by Boeing includes unmanned rotocraft and fabrication of electrical subassemblies and composites for military and commercial aircraft. Boeing operates one of the world’s most advanced flight simulation facilities in Mesa, where company designers and engineers can evaluate new avionics, crew station designs or mission software. And, encompassing software development, maintenance, system integration and testing, Boeing staffs the Iridium Satellite Technical Support Center in Chandler for Iridium Communications, Inc. Boeing impacts Arizona’s technology ecosystem in contracting with 424 suppliers and vendors throughout the state. Its annual expenditures with Arizona suppliers and vendors is $1.4 billion, and it supports, directly and indirectly, an estimated 48,000 jobs in Arizona. It is commonly recognized that the work force of the future will rely on strong skills in science, technology, engineering and mathematics, and Boeing’s spokesperson notes the company is committed to STEM education. Among the many programs it supports is “Engineering is Elementary.” This professional development program is designed to help teachers of grades pre-K through middle school foster their students’ understanding and interest in engineering and technology.

SEMICONDUCTORS AND ELECTRONICS MICROCHIP TECHNOLOGY INC. “Arizona has a good semiconductor ecosystem because of the number of large and small semiconductor companies, manufacturing plants (otherwise known as Fabs) and semiconductor support services in the areas of equipment, chemicals, gasses, spare parts, repairs, etc. — all of which are located in-state,” says Steve Sanghi, president and CEO of Microchip Technology Inc., a semiconductor company that designs, manufacturers and markets microcontrollers, analog, mixed-signal and memory chips. Globally, the semiconductor market has lost some of its steam. Now a maturing market, its rate of growth has slowed markedly. The Semiconductor Industry Association’s statistics give a rate of growth in each of the past 10 years at 4.7 percent, compared to 7.8 percent during the preceding 10 years. But, while Sanghi points to the closure by Intel, Freescale, STMicroelectronics, ON Semiconductor, his own company and others of a significant number of older Fabs, he also notes these companies do maintain other plants in Arizona that they continue to operate.

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Of Microchip’s 9,430 employees worldwide, 2,100 are in Arizona. The company was founded here, a spin-off in 1989 of General Instruments’ semiconductor division. Initial access to capital, Sanghi relates, was through venture-capital funding — a source he says new companies are finding fairly scarce in Arizona. “First, there is a shortage of VC funding and, secondly, the quality of Arizona business plans is inferior to that of our neighbors to the northwest,” he says, referring specifically to California. “So, it is a chicken-and-egg scenario. Entrepreneurs often end up going to California to seek venture funding. That scenario does not allow a vibrant VC funding community, nor high-quality funding ideas, to develop here.” Some of the work force also comes from out of state. “Engineering employment has always been a U.S.-wide market,” Sanghi says. Observing, “A large number of the engineers working at Arizona companies have moved from somewhere — California, Oregon, Colorado, Texas, Massachusetts, North Carolina or any of the others tech hubs in the country,” he says Microchip is able to draw the required employees to Arizona and cites our good climate and low costs of housing and living as helping make Arizona attractive to them. At the same time, he notes also, Arizona’s universities have a very large enrollment, and they are graduating students in record numbers for the local as well as national markets. Of education overall in Arizona, he says, “The K-12 education in Arizona’s public schools still leaves something to be desired, but the college-level education is good.” Arizona Public Service aps.com Axosoft axosoft.com CenturyLink centurylink.com Microchip Technology Inc. microchip.com The Boeing Company boeing.com Translational Genomics Research Institute tgen.org

JUNE 2015

FUNDAMENTALS OF FUNDING

FINANCIAL WELLNESS BY GENERATION Millennials appear to have the most psychological “baggage” from the Great Recession. From the way they manage their money to how they invest, their focus is strongly on immediate issues rather than building wealth for the long term. This group has the lowest 401(k) participation rate of all generations at 83 percent in 2014, despite having more exposure to auto-enrollment than previous generations. Gen X’ers are in the most danger and the least likely to achieve financial security. Faced with competing priorities, Gen X’ers may be putting their children first at the expense of their own financial security. Only 17 percent are on track to retire comfortably, yet 23 percent are contributing to a 529 college savings plan. Baby Boomers are, overall, the most financially secure but face an impending healthcare crisis due to longevity and inadequate insurance planning. Only 16 percent of boomers report having long-term care insurance, despite estimates from the U.S. Department of Health and Human Services that 70 percent will require some level of care in retirement. Source: Financial Finesse 2015 Generational Research goff.im/2014_ Generation_Study_FF

JUNE 20 1 5

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Finance: Employee Wellness Benefit The move is on to tackle financial illiteracy by RaeAnne Marsh Financial wellness is increasingly a concern of employers for their employees. “There’s almost universal awareness now that financial problems affect business,” says Mike Sullivan, director of education with Take Charge America, explaining that people do not attend to business as well as they would if they didn’t have financial problems on their mind. “So businesses need to attend to employees’ financial wellness in order to help their own bottom line.” Although companies have begun paying more attention to this need in just the past few years, Sullivan believes the need arose as a result of the Great Recession. “People were so impacted by the Great Recession, but companies did not become aware until a few years later as to the impact on their bottom line.” Financial wellness is seen as an important part of employee benefits. In fact, in the 2015 “Hot Topics in Retirement” study by Aon Hewitt, recognized as the global leader in human resource solutions, 93 percent of the respondents indicated they plan to initiate or expand their financial wellness programs.

PROGRAMS BROAD AND NARROW Greg Ward, think tank director for Financial Finesse, sees these programs being offered primarily as part of a total wellness program, which includes physical wellness initiatives. “There’s a well-understood connection between stress — and financial problems are a main cause of stress — and physical wellness,” he says, and notes that less financial stress, more engagement, and helping employees stay on track to achieve retirement goals are the main drivers that HR executives and employers want to address. “It has become a best practice for an employer to pay for education and make financial wellness available to the entire work force,” Ward says. He makes a distinction between financial education, which has been around for a long time

and which focuses on selected topics, and financial wellness. “Financial wellness as an industry incorporated into a wellness program that provides education through a holistic model emerged about five or six years ago.” And he cites a recent study his company did with an employer group of about 50,000 employees that found the employer had saved several million dollars from the population that participated in its program. Savings came from reduction in healthcare costs, increase in health savings account participation, and reduction in absenteeism and wage garnishment. The holistic approach to financial planning that Ward describes starts with an individual financial wellness assessment. “We need to gauge where the employees are before we can start to offer financial education.” The information is then analyzed to determine key vulnerabilities, such as not paying bills on time or not understanding investment options. Education then addresses needs, such as cash management, debt management, retirement and investing, and can include college savings, insurance and taxes, and estate planning. Take Charge America’s Sullivan relates some companies take an aggressive approach to their involvement, with one-on-one programs to encourage an employee to deal with an issue and mechanisms — including paying the fees for services — to make assistance available. Honor Health, for instance, “tries to get people specific assistance.” In addition to education, Honor Health helps with individual credit counseling, student loan counseling, housing counseling, “or whatever particular issue the employee may be facing.” Other companies that Take Charge America works with take a middle approach, stressing education through onsite Lunch & Learn classes on specific topics. These formal presentations are not usually well-attended, Sullivan relates, and adds, “Some companies make company time available; attendance goes way up.”

A NerdWallet study found the average U.S. household credit card debt stands at $15,609, counting only those households carrying debt nerdwallet.com/credit-cards

Sullivan notes, however, that finding the right time to present a class on a given subject is becoming a challenge. “There is an increasing trend of people wanting just-in-time information. For instance, a class on how to avoid collections will draw a lot of people who are on the verge of dealing with collection. And in a class on retirement planning, there will be a lot of grey heads rather than people in their 40s.” The lowest level of involvement for a company is to offer occasional events such as a Wellness Fair that includes financial wellness. “Bigger companies are more likely to have large-scale, ongoing efforts,” Sullivan says, noting that an onsite educational session needs a critical mass of people interested in the topic. “It’s more difficult for smaller companies to free up the resources that are appropriate.” Instead of an ongoing program, smaller companies may do what Sullivan calls a “one and done” when they see a problem with debt, for instance, indicated by wage garnishment.

TAILORING TO NEED Local insurance and benefits company Lovitt & Touché launched its official emphasis on financial wellness in April last year, with a focus on using Take Charge America services. “We noticed an increase in questions to HR on different financial stresses throughout 2013,” says Human Resources director Shawn Ellis. “The management team decided if this was top of mind to them, we wanted to bring them programs that were relevant.” Targeting all employees and taking into account their different walks of life, according to Ellis, the financial wellness program started with helping people understand how they view money and learning about budgeting, to establish a game plan. Additional education covered types of debt and debt options, and the program then made available one-on-one consultations. “The feedback has been very positive,” Ellis says, sharing that some employees had initially been concerned about how they might be judged if they attended any of the education programs. After testing the waters as to what would be of interest to include in the program, Ellis says Lovitt & Touché realized no one tool was right for all employees and decided to offer a variety of tools. This year’s program added a Social Security planning seminar, the MetLife Retirement program and a presentation by noted financial advisor Dave Ramsey.

Move Your Bus Teamwork is crucial to the success of any business, and, as he illustrates, the members of any team are the key to unlocking success. Imagine a company as a bus filled with people who either help or hinder a team’s ability to move it forward: drivers (who steer the organization), runners (who consistently go above and beyond for the good of the organization), joggers (who do their jobs without pushing themselves), walkers (who are just getting pulled along), and riders (who hinder success and drag the team down). It’s the team leader’s job to recognize how members fall into these categories, encourage them to keep the “bus” moving by working together, and know when it’s time to kick the riders off. Title: M ove Your Bus: An Extraordinary New Approach to Accelerating Success in Work and Life Author: Ron Clark

Price: $20

Publisher: Touchstone

Available: 6/30/2015

Pages: 192

Power Score The formula in this book is based on the most extensive research of its kind, spanning more than 15,000 careers with more than 9 million data points. The idea has been battle-tested for more than two decades by leaders in every major industry. It works. Successful leadership starts with three key questions: Do we have the right priorities? (Only 24 percent of leaders do.) Do we have the right people on the team? (Only 14 percent of leaders do.). Do we have the right relationships that deliver results? (Only 47 percent of leaders do.) Readers will learn how to calculate their team’s Power Score, and how to improve each of the three key areas of leadership. Title: Power Score: Your Formula for Leadership Success Authors: Geoff Smart, Randy Street and Alan Foster

Price: $26

Publisher: Random House Publishing Group

Pages: 192

Available: 6/16/2015

THE RIGHT REPRESENTATIVE Experts have long been available to speak to employee and other groups on specific topics, and businesses can take advantage of nocost opportunities to provide information to their employees. However, Sullivan notes that 401(k) and investment companies, and insurance companies, are often anxious to talk to employees about financial matters as an opportunity to get them to sign up for services. In such cases, he observes, the advice is likely to be skewed. “Companies need to be aware of who is presenting,” he says. Motive may need to be balanced against expertise. “It’s important to get the correct speaker for the topic,” says Sullivan. So, too, with financial education services companies. Sharing that Take Charge America is more for people who have financial challenges whereas individuals with a lot of money might need to work with an investment company, Sullivan notes companies have different skills they can offer employers developing a financial wellness program. Financial Finesse financialfinesse.com Lovitt & Touché lovitt-touche.com

Do Less, Get More Anything is possible when you stop trying to do everything at the same time. Often, it’s fear that keeps us stuck in our patterns. If we’re super busy, then no one can say we’re not working hard. But there’s another way to live a life that’s both more enjoyable and more productive, if only we can break those routines. In Do Less, Get More, entrepreneur and bestselling author Shaa Wasmund reveals that when we embrace a “less is more” attitude, we can appreciate all the good things we already have and find the courage to prune the nonessentials. And then we can find the space in which to pursue exciting new opportunities. Title: Do Less, Get More: How to Work Smart and Live Life Your Way Author: Shaa Wasmund Publisher: Penguin Publishing Group

Price: $27.95 Available: 6/9/2015

Pages: 224

Take Charge America takechargeamerica.org

A growing number of employers realize that basic money management plays a critical role in an individual’s financial wellbeing, according to an Aon Hewitt study last year which found that, to ensure workers are able to pay for day-to-day living expenses, a quarter of employers were very likely to provide some assistance to employees to help with budgeting.

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PACKAGED TO IMPRESS

Jeff Sauro, author of Customer Analytics for Dummies, is a Six Sigma-trained statistical analyst and pioneer in quantifying the customer experience and the founding principal of Measuring Usability, L.L.C., a customer experience and quantitative research firm based in Denver with clients that include Walmart and Google. He specializes in making statistical concepts understandable and actionable, and his new book focuses on providing a working knowledge of how to measure each stage of the customer journey, and use the right analytics to understand customer behavior and make key business decisions. Currently completing his Ph.D. in research methods & statistics at the University of Denver, Sauro has published more than 20 peer-reviewed research articles on statistics and the user experience. His other books include Quantifying the User Experience: Practical Statistics for User Research and A Practical Guide to the System Usability Scale. Measuring Usability, L.L.C. measuringu.com

JUNE 20 1 5

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Customer Loyalty: Gauge It as a Growth Predictor

Actually measuring and analyzing customer loyalty pays off in planning company strategy by Jeff Sauro Sure, your company has satisfied customers. If you didn’t, you wouldn’t be in business (at least not for long). But here’s a question few companies ask: How loyal are they? Will they recommend your products and services to others? Will they stick with you through thick and thin? Or will they run at the first sign of a price increase or some other change that rubs them the wrong way? The mere presence of customers (even those who’ve stuck around long enough to make multiple purchases) isn’t enough. You need to be able to measure their loyalty so you can use it to predict the health of your company. Too many companies spend a ton of time and effort getting a customer to make a purchase, and then they just hope for the best. The problem with that approach is that operating in the blind in terms of loyalty makes it likely the company’s leadership will make ill-advised decisions that will come back to bite them. When they measure customer loyalty, they will be able to not only make the most of that loyalty but also to make better strategic decisions for the company.

Good customer management comes from good customer measurement. Customer loyalty is an important analytic for determining how well a company or product is positioned to grow or shrink based on future earnings. The “best” metric for determining customer loyalty depends on the industry, company and type of product or service, but for most organizations, measuring customers’ intent to repurchase a given product or service and their willingness to recommend the company to others provides a solid base. Find out if they’re likely to buy from you again. Probably the first way to gauge customer loyalty is to compute the percentage of customers who are repurchasing, reusing or returning to a product or service. This data can be collected from past sales or from surveying customers about their past or future intent. Repurchase habits are measured differently depending on the type of product or service offered. For example, for rental car companies, the repurchase rate is a good indicator of loyalty as certain customer segments rent multiple times per

Net Promoter, developed by Satmetrix, Bain & Company and Fred Reichheld, is now the worldwide standard for organizations to measure, understand, and improve their customer experience. The Net Promoter Score, or NPS®, is a straightforward metric that helps companies and every employee understand and be accountable for how they engage with customers. netpromoter.com

year and have many companies to choose from. For software companies, a similar measure of repurchase loyalty is the maintenance contract renewal rates. Collecting actual repurchase rates and building a repurchase matrix can take years, especially for products that aren’t purchased frequently. To speed up the process and gauge customers’ loyalty before they defect, a company should survey its customers and ask their intent to repurchase. For best results, keep the surveys short. Gauge word-of-mouth promotion with the Net Promoter Score. The Net Promoter Score (NPS) is a popular way of measuring customer loyalty through understanding word-of-mouth marketing. It is based on a single question: “How likely are you to recommend [product or service] to a friend or colleague?” NPS is calculated by following a three-step process. First, customers are asked how likely they are to recommend a company’s product or service to a friend or colleague. The next step is to compute the proportions of “promoters,” “passives” and “detractors.” Promoters are customers who are most likely to speak about and recommend a company’s product or service. Passives are generally satisfied with its product or service but are less likely to recommend it to others. Detractors are not only the least loyal, but also the most likely to actually discourage friends and colleagues from purchasing or using the company’s product. The final step is to compute NPS by subtracting the percentage of detractors from the percentage of promoters. Getting access to competitive data can be difficult for some industries and products. Even without competitive data, though, the best comparison is often measuring the same product, service or company over time. Netflix offers a great example. In February 2011, the company’s NPS was very high at 73 percent. Then, in the fall of 2011, the company decided to split off its home delivery of DVDs and its streaming service into two companies, which angered customers. My company surveyed Netflix customers a month after the change and found the NPS had plummeted to a negative 7 percent. Perhaps Netflix did perform the testing and anticipated losing customers. The much larger loss is likely due to other factors and perhaps to untested customer correspondence and the geometric effect of negative word of mouth. But using the NPS as a predictive analytic tool can help prevent disasters and identify winners early. Be aware of bad profits. How does it feel to pay the check at the restaurant where you had terrible service and bad food? Or how about paying $150 to change your airline ticket reservation? Obviously, nobody likes to pay for a subpar or overpriced product or for bad service, and yet, in these examples, companies financially benefit from a customer’s negative experiences. However, it’s a short-term benefit. Those are bad profits, and they’re a ticking time bomb. They lead to customer resentment and a decrease in customer loyalty, and they eventually impact profits negatively. By combining NPS data with customer-by-customer revenue data, a company can estimate the amount of revenue derived from bad profits. Even without access to financial data for one’s company or a competitor, the percentage of bad profit revenue can usually be estimated. For example, when my company measured customers of consumer software products a couple years ago, we found that about 17 percent of Adobe Photoshop users were detractors. Assuming everyone pays around the same price for a Photoshop license, some 17 percent of Adobe’s revenue from Photoshop comes from detractors. While it’s bad to generate revenue from dissatisfied customers, it’s worse if a large proportion of a company’s revenue comes from detractors.

Too much detractor revenue for a product or entire company makes that company more susceptible to new competition, alternatives or abandonment. Two actions a company may take if more than 10 percent of company or product revenue comes from detractors are to stop selling to those customers or attempt to fix the problems that are making the detractors unhappy. Making the adjustments to price, quality and features to meet those customers’ expectations can be a huge challenge, but that’s usually what separates the best-in-class companies from the rest. Find out what customers like most about your product/service. One of the most effective ways to understand what drives customer loyalty is to conduct a key driver analysis. Key drivers include quality (Are the products reliable? Do they work as described?), value (Does the product give buyers the best bang for their buck?), utility (Does the product offer essential features?), and ease of use (Can customers use the features without frustration?). A key-driver analysis tells a company which features or aspects of its product or service have the largest statistical impact on customer loyalty. It can be conducted for all customers but also for each different customer segment. It will enable a company to identify the most popular or unpopular features or aspects of its product or service, and have customers rate that experience as well. Pinpoint your haters. While companies should strive for more promoters, it’s often the customers who are least satisfied with their experience who have a much larger impact on referrals and the brand. Research supports that customers who are dissatisfied with a product or service experience are actually more likely to be vocal and tell more friends and colleagues about their bad experience than generally satisfied customers. The negative effects of detractors can outweigh the positive effects of promoters. So, once a company has identified its detractors, its leaders will have to find out what will make its detractors happy and loyal, and then decide whether it is worth it to spend the resources to make those changes or whether it’s more cost-efficient simply to go after new customers who will be happy with the way the company currently operates. Make sure you’re getting your money’s worth from promoters. Generally speaking, promoters are a positive asset to a company. But before going all-out to attract as many as possible, it’s a good idea to take the time to understand how valuable a promoter is, both in terms of revenue and in how many new customers a promoter brings to a company. The best way to understand how much revenue a promoter generates is to tie actual sales to survey responses to see how many promoters actually recommended someone, and how many of those people who heard the recommendation actually became customers. With some estimate of the number of promoters needed to gain a new customer, a company can then weigh the cost of new programs, features, pricing and promotions to determine if the benefit from new customers outweighs the cost. If, for example, a company would have to reduce the price of its product to turn customers into promoters, gaining those promoters might not be financially sustainable. Similarly, if it would cost close to a quarter of a million dollars to add a new feature to a product while that new feature would generate only 10 new promoters, it’s not worth it. And for websites, a new “customer” might just be a new visitor or subscriber, so the cost of gaining new promoters can be important. Another important point: Companies that use a particular price, deal or feature to gain promoters should think twice before changing it after those people have begun singing their praises, as the removal of a favored feature can frustrate the users and turn a promoter into a detractor. Customer loyalty isn’t black and white. A company that uses analytics to dig into why customers buy from it, how often they do or don’t recommend it to others, and so on, can make better product decisions, provide better service, and make changes to ensure it can create many more loyal customers.

With more than 250 million books in print and more than 1,800 titles, For Dummies is the most widely recognized and highly regarded reference series in the world. Since 1991, For Dummies has helped millions make everything easier with numerous titles for references for business. dummies.com

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INVESTING IN COMMUNITY

UP NEXT MONTH Giving USA 2015 — an annual review of the sources and uses of charitable giving in the United States.

MILLENNIAL FACTS The final session of The Giving Institute’s 2015 Spring Board Meeting and Summit included a panel of young Arizona leaders and focused on the critical importance of youth leadership development, engagement and philanthropy to the continued vitality of nonprofits. Among the insights that were shared: • A commitment to youth leadership development is one way to counteract the millennial’s tendency to migrate from position to position. • Millennials view volunteerism as a form of philanthropy and see the giving of their time, energy and ideas as significant contributions. • Organizations should allow young leaders to really examine the programs they are a part of, analyzing their usefulness in the organization.

THE AUTHORS Michal Tyra and William Bessette are consulting associates with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

JUNE 20 1 5

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Make Room for Millennials

Leadership development for young professionals is often an overlooked focus of many nonprofits. But it should be front and center. by Michal Tyra and William Bessette It might seem an odd fit: a nonprofit aligning itself with 20- to 32-year-olds who, at first blush, appear to have little in common with such institutions. But successful nonprofits believe such a pairing is simply good strategy, especially considering that half the U.S. work force by 2020 will consist of this young demographic known as millennials. They are 80 million in number, and they spend $300 billion annually as reported in The Millennial Impact Project conducted by the Case Foundation. And, as it turns out, millennials do have something quite significant in common with the nonprofit: They are driven by causes, not money. For those reasons, executives sitting on nonprofit boards should take note. “Most nonprofits currently rely heavily on the baby boomer generation for leadership and donor support,” says Kelsey Wolf-Donnay, individual giving manager at Desert Botanical Garden. It’s no secret that boomers are aging and retiring, placing millennials at the heart of the nonprofit’s sustainability. “The task of inviting and including upcoming generations to support the nonprofit is crucial.” But how does a nonprofit most effectively engage the millennial? Recruitment, leadership training and cultivation are keys. Corporate executives who sit on nonprofit boards can encourage their organizations to:

ASSESS First, look at the nonprofit: Are young leaders even employed within or volunteering at the organization? If they are absent, the organization needs to identify those young individuals already connected to the mission and vision. Then it should begin to diversify its committee and board memberships — altering the long-held governing structure. In other words: Make room for millennials.

UNDERSTAND Understanding millennials’ priorities, motivations, habits and desires — and even their feelings about philanthropy — goes a long way in developing a strategy for the future. It is helpful to understand that millennials: • Seek more than a paycheck. They want to serve a cause they care about, and often choose where to live and work based on this cause.

• A re driven to prove themselves to social circles and their co-workers. • Want to engage personally rather than simply write a check. Millennials define “giving” through their investment in time and have a longer trajectory toward becoming donors. • “Millennials are often entrepreneurial as well,” says Edgar Olivo, board development chairman for Arizona Humanities. “And therefore they are often interested in the nonprofit’s social enterprise opportunities.”

CULTIVATE One way to engage with millennials is to cultivate them as volunteers early on. Continued acknowledgment of volunteers’ importance may lead to them becoming some of the organization’s most loyal donors when they are able to contribute financially. Volunteer programs also provide nonprofits with access to local talent that may grow alongside the organization. “Also, don’t forget,” says Olivo, “that young volunteers come highly skilled in technology and are highly motivated because the workplace is a new world to them. This can re-energize their older peers and breed new perspectives.” Youth cultivation can also occur through meaningful internship opportunities that engage young people in the real work of the nonprofit. Interns who are running for coffee or making copies are a missed resource for the nonprofit’s future growth strategy and stability.

DEVELOP Nonprofits must make a genuine commitment to develop young leaders through educational opportunities, mentorship opportunities and professional development. One option is to create a young professionals group, which serves as a talent recruitment incubator for the nonprofit. In such groups, millennials participate in leadership development training opportunities sponsored by the nonprofit organization while networking with other young professionals. In this capacity, youth have the chance to try on the nonprofit sector for fit while the organization builds community ties with future leaders, all connected to one another. “The goal is to increase the number of young professionals in your organization,” says Wolf-Donnay, citing

The Millennial Impact Project began in 2010 to provide research-based information about millennials to companies and causes trying to understand and better engage their donors, volunteers and employees. The project involved four years of research with more than 50 research partners and more than 16,000 millennials. themillennialimpact.com

Desert Botanical Garden’s Monarch Program for young professionals, which grew from 50 to 485 members over four years. “The other goal is to increase their involvement in the organization.” When organizations focus on leadership development for young professionals, it sends a powerful message. “It also builds a sense of loyalty and trust,” says Emily Mead, director of strategic engagement at the Greater Phoenix Economic Council. “Nonprofits that don’t put a strong emphasis on the development of young leaders risk the opportunity to gain long-term donors and miss the chance to tap top talent for new branding and fundraising ideas.”

Attracting Young Talent from Arizona’s Back Yard Local nonprofit The Manifesto Project Arizona (themanifestoproject.org) designed its program to assist local for-profit and nonprofit organizations in their efforts to develop a pipeline of young leaders, and it also welcomes local organizations to become a host or community partner. Through the Manifesto Project’s Board Apprenticeship Program, organizations reserve a “shadow” position on their boards of directors, executive committees or subcommittees for a high-potential young professional matched to their organization or identified internally. Young leaders receive board and professional development training through the Manifesto Project’s community partners, are assigned a mentor within the host organization, and serve a one-year, non-voting term during which they gain invaluable high-level strategic experience in their chosen sector. “We recognize the continual need for new energy and new ideas to solve some of the most basic problems confronting the changing face of hunger,” says Beverly Damore, president and CEO of participating organization St. Mary’s Food Bank Alliance. “We believe that the young leaders joining our organization have the opportunity to interact and give back to our community in ways they never have been able to before. We could not be more pleased to work with them, and are honored to have this opportunity.” The program is designed to assist local for-profit and nonprofit organizations in their efforts to develop a pipeline of young leaders.

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Do you really want to tell your employees the best pediatric care is not in their network? Your employees and their families deserve the best care. Phoenix Children’s is among a select group of pediatric care providers recognized for excellence in meeting the highest standards for patient safety, quality and value. Make sure your plan includes Phoenix Children’s Hospital and Phoenix Children’s Care Network, its network of physicians, so the best is available for your employees and their families.

For more information visit:

PhoenixChildrens.org

JUNE 2015

SAVE THE DATE

Upcoming and notable 2015 Business Summit and Opportunity Fair JULY

Fri., July 10

10 8:00a – 5:00p Pacific Southwest Minority Supplier Development Council

Business Alliance of Local Living Economies and Local First Arizona

13th Annual BALLE Conference

Wed., June 10 – Fri., June 12 9:00a – 10:00p (Wed.); 7:00a – 10:00p (Thurs.); 7:00a – 9:00p (Fri.) The 2015 BALLE Conference is a three-day conference that will be held in several different locations and local venues in Downtown Phoenix. Local First Arizona is the local host of this annual conference. The conference brings together more than 700 local business leaders to explore how locally rooted economic systems solve environmental, financial and social problems. Social entrepreneurs, community funders, policymakers and local economic leaders from across North America attend. This year’s theme is “What’s Working Locally,” which will be the basis for this year’s discussions on practical solutions and wisdom that attendees can take back to their own local communities to advance the emergence of a new economy that is just, fair and healthy for people, place and planet. BALLE (Business Alliance of Local Living Economies) is a nonprofit organization focused on creating real prosperity by connecting leaders, spreading solutions and driving investment to local economies. Local First Arizona is a statewide nonprofit organization working to strengthen communities and local economies through growing, supporting and celebrating locally owned businesses throughout all of Arizona. Registration is required, and covers attendance at BALLE Conference activities, including regular conference programming, six meals, evening parties and more. —Mike Hunter

U.S. Department of Energy

14th Annual Small Business Forum & Expo Tues., June 16 – Thurs., June 18 8:00a – 5:00p Every year for the past 14 years, the Department of Energy has presented this Forum & Expo to feature plenaries, educational workshops, food and beverage events, the large expo, and “matchmaking” sessions to connect business to business. More than 700 attendees will represent all levels of Federal, state and local government agencies, the small business community, large/prime contractors, and many more. The largest civilian contracting agency within the Federal government, DOE awarded a total of $8.6 billion in contracts in fiscal year 2014 to prime and subcontracts (per preliminary results). The 14th Annual DOE Small Business Forum & Expo is a great opportunity for small-business owners and large companies to network and partner. Forum attendees are strongly encouraged to pre-register for the event. Onsite registrations and forum materials are subject to availability and cannot be guaranteed. Forum registrations are confirmed when registrations and payments are received and processed. Registrants will receive a registration confirmation email upon completion of the registration process. Registrants are encouraged to register by June 10, 2015. —Mike Hunter

$650 Multiple venues in Downtown Phoenix bealocalist.org/conference

$379; after June 10: $449 Phoenix Convention Center 100 N. 3rd St., Phoenix smallbusinessconference.energy.gov

Three events in one! The Business Summit provides attendees with educational sessions on current and relevant topics affecting minority businesses today. The Matchmaking session affords opportunities to meet one-on-one with corporate representatives. The Business Opportunity Fair is a trade fair providing a format for corporations, government agencies and MBEs to showcase and share their products and services. $75 – $150 Scottsdale Plaza Resort 7200 N. Scottsdale Rd., Scottsdale pswmsdc.org

Federal Reserve Luncheon with John C. Williams JULY

Wed., July 15

15 11:00a – 1:00p Mesa Chamber of Commerce Special Engagement Event: John C. Williams, Ph.D., president and CEO of the Federal Reserve Bank of San Francisco, serves on the Federal Open Market Committee, which brings the Fed’s Twelfth District’s perspective to monetary policy discussions to Washington, D.C. Dr. Williams will speak to the nation’s economic outlook. Members: $50; non-members: $60 Hilton Phoenix/Mesa 1011 W. Holmes Ave., Mesa

JUNE 2015

mesachamber.org

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14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Sun., June 14 – Flag Day Sun., June 21 – Father’s Day Sun., June 21 – Summer Solstice

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JUNE 2015 Tues., June 2

11:30a – 1:00p

Tues., June 9

11:00a – 1:00p

‘Meet the Mayors’ Luncheon

‘Leading Ladies: ATHENAs Share Success Secrets’

West Valley Women

Greater Phoenix Chamber of Commerce – Professional Women’s Alliance

Networking luncheon, with West Valley mayors or their representatives attending.

The 2014 ATHENA Award recipients share their secrets to success, their advice on personal and professional accomplishment, and their hopes for the future. Speakers are Christy McClendon, president & CEO of New Pathways for Youth; Tammy McLeod, VP of Energy Resource Management at APS; Pearl Chang Esau, president & CEO of Expect More Arizona.

Members: $30; non-members: $35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

Members: free, with lunch: $25; non-members: $45 (lunch included); advance registration is required for lunch Phoenix Country Club

2901 N. 7th St., Phoenix

Tues., June 9 – Wed., June 10

Pearl Chang Esau

phoenixchamber.com

9:00a – 4:00p (both days)

‘3 P’s of Powerful Presentations: Professional, Promotion & Profit’ Wed., June 3

5:30p – 9:00p

Phoenix Strategic Performance / Arizona Commerce Authority

28th Annual Chandler Chamber Community Awards Dinner

Members: $50; non-members: $60

Joanne Flynn, founder of Phoenix Strategic Performance, discusses how to make your presentation more effective, powerful and engaging. Presentations include how to professionally promote your product or service into a competitive marketplace; how to present for profit when dealing with the C-suite, investors and financial institutions; how to master presentation skills as one of your core professional skills; and how to professionally brand yourself for your career development.

Wild Horse Pass Hotel & Casino

$495 (includes continental breakfast, lunch and beverages both days)

Chandler Chamber of Commerce Dinner and awards presentation honoring business and individual excellence. Formal dress is encouraged. 5040 Wild Horse Pass Blvd., Chandler

ASU SkySong

chandlerchamber.com 2

8 Thurs., June 4

1365 N. Scottsdale Rd., Scottsdale

10 Wed., June 10

5:00p – 7:00p

Desert Diamonds Awards Gala

Scottsdale Area Chamber of Commerce

National Association of Women Business Owners – Phoenix This power-packed event includes the live announcement of the 2015 Desert Diamond Award winners, the introduction of the 2015-2016 board of directors and more.

Members: free; non-members: $20; at-the-door: additional $5

Members: $50; non-members: $60; scholarship recipients: free

Bottled Blonde

The Phoenix Country Club

7340 E. Indian Plaza, Scottsdale

2901 N. 7th St., Phoenix

nawbophx.org

scottsdalechamber.com Thurs., June 11

8:00a – 3:00p

11:30a – 1:00p

PM Connect Food, fun and networking, so don’t forget to bring plenty of business cards. Light bites and refreshments will be served.

Mon., June 8

phoenixstrategicperformance.com

11:30a – 1:00p

Luke AFB Goodie Bags

Lunchtime Learning Forum – Safety and Situational Awareness

Surprise Regional Chamber of Commerce

Tempe Chamber of Commerce

Leverage the Military Affairs Committee “Luke Bag” program to deliver your promotional items, flyers, coupons, et cetera directly to Luke AFB newcomers and those separating from active duty. These consumers are prime targets for your goods and services. Please provide a minimum of 50 items (pens, flyers, coupons, etc.) per month. No long-term commitment required; you can include your promotion for just one month or every month.

The experts at C2 Tactical, a firearms training facility and Tempe’s only indoor shooting range, will present, in a fun and practical way, steps that you can take to keep yourself, your family and your business safe. Ranging from situational awareness to basic defensive behavior, this information is something everyone will benefit from.

Free Surprise Regional Chamber of Commerce surpriseregionalchamber.com

JUNE 20 1 5

INBUSINESSMAG.COM

16126 N. Civic Center Plaza, Surprise

Members: $25; non-members: $35 C2 Tactical

8475 S. Emerald Dr., Tempe

tempechamber.org

Please confirm, as dates and times are subject to change.

For more events, visit “Business Events” at www.inbusinessmag.com

Tues., June 16

3:00p – 5:00p

Wed., June 19

9:00a – 4:30p

Grow Globally Fair Phoenix

INTERFACE Phoenix 2015

Global Chamber

Arizona Technology Council

Annual fair features all the global resources in Phoenix, all together, one time per year.

It is critical that businesses stay up-todate with the technology that runs their organization and ensures a secure environment for its data and infrastructure. INTERFACE helps businesses meet these needs by providing quality, vendor-neutral educational seminars, drawn from case studies and best practice examples from leaders in the field.

Members: free; non-members: $25 SkySong 1475 N. Scottsdale Rd., Scottsdale globalchamber.org/events

$65; free with valid email address Thurs., June 18

8:00a – 4:30p

Westin Kierland Resort – Kierland Grand Ballroom

Academy of Arizona: Getting the Deal Done / Social Media Exchange: Making it Work for your Community

6902 E. Greenway Pkwy., Scottsdale aztechcouncil.org

Arizona Association for Economic Development “Getting the Deal Done” is an interactive course that provides an introduction to legal use of economic development incentives in Arizona. Participants will leave the course with the ability to better identify application and limits of various economic development incentive tools. “Social Media Exchange – To Tweet or not to Tweet” covers how to grow your social media presence and gain exposure with the right audience, and acquire helpful insights and learn best practices from communities in Arizona that are using social media tools creatively to increase their economic development impacts.

Wed., June 24

Members: $80; non-members: $130

Copper Blues

Gust Rosenfeld P.L.C.

1 E. Washington St., Phoenix

Wed., June 17

Business After Hours Tempe Chamber of Commerce Enjoy a casual mixer with food, drinks, conversation and network development. Members: free; non-members: $10

aaed.com/events

930 E. University Dr., Tempe

tempechamber.org

Thurs., June 25

11:00a – 1:00p

5:30p – 7:00p

24 11:00a – 4:30p

Annual Business Awards Luncheon

Phoenix Investor Roundtable

Gilbert Chamber of Commerce

Funding Post / Black Dog Promotions

Event honors Business of the Year (Large), Business of the Year (Mid-sized), Business of the Year (Small), Employer of Choice, Family Business of the Year, and Volunteer of the Year.

Meet early-stage accredited investors in Phoenix. Panels of local and out-of-town investors will focus on pitching to early-stage investors. Discussion will include things that are most important to investors when they are considering an Investment, the best and worst things an entrepreneur can do to get their attention during a pitch, and the best ways to reach these and other investors. There will be plenty of time for networking with the investor panelists during the breaks and networking party. The first 25 entrepreneur attendees to sign up will also get the option to pitch their business idea in 60 seconds or less in front of the investor panel and receive feedback as a group from the panel. The winner of the pitch competition will take home an Entrepreneur Prize Package from Microsoft! Sponsored by Grow Southwest, FP Angels, Black Dog Promotions.

Members: $35; non-members: $50*; after 11:00a on June 10: add $10

Kevin DeRosa and Darren Patoni (l to r)

Doubletree by Hilton Phoenix-Gilbert – SanTan Elegante Resort & Conference Center 1800 S. SanTan Village Pkwy., Gilbert gilbertaz.com

Entrepreneur: $59; investor/service provider: $79 Wed., June 17

5:30p – 7:00p

Ahwatukee after 5 Evening Mixer Ahwatukee Foothills Chamber of Commerce An evening of business-to-business networking. Members are encouraged to bring a door prize to promote their business.

Microsoft Meeting Room Thurs., June 25

60 E. Rio Salado Pkwy., Tempe

fundingpost.com

5:30p – 7:30p

Contactos After 5 Mixer Hispanic Chamber of Commerce

Members: $5; non-members: $15

Every Contactos features announcements from the chamber’s partners and plenty of giveaways.

On the Border Mexican Grill

Members: free; non-members: $10

ahwatukeechamber.com

5005 E. Ray Rd., Phoenix

Crescent Crown Distributing

If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com

1640 W. Broadway Rd., Mesa

azhcc.com

20 1 5 33 JUNE INBUSINESSMAG.COM

WE VALUE WHAT WE OWN

BY MIKE HUNTER

2015 BMW Alpina B7 Sedan

BMW ALPINA B7 City: 16 mpg Hwy: 25 mpg Trans: 8-speed automatic 0-60 mph: 4.7 sec MSRP: $132,200

can sit in utter luxury designed by the vehicle’s owner. From the dashboard view to the multiple suspension and driving modes, the B7 is truly all about choices. The Driving Dynamics Control allows the driver to fine-tune the driving experience. Choose from Comfort, Comfort+, Sport and Sport+ to make multiple dynamic changes that include engine-throttle response, shift characteristics, power steering assist and traction control to enhance performance or comfort. The vehicle also has an Eco Pro mode that allows for a more efficient drive economically and environmentally. The exterior is the 7 series model with two length options for rear-seat comfort. The notable differences are in Alpina styling and the unique badging: the renowned emblem on the specially produced engine, the steering wheel handstitched from Lavalina leather and the back seats embossed with the distinct Alpina logo. The signature 21-inch, 20-spoke aluminum wheels are standard and give a classic BMW appeal in a larger wheel size and sophistication beyond what BMW is known for. BMW of North America bmwusa.com

Alpina is an automobile company in Germany that works closely with BMW and integrates into the BMW product line of cars with performanceenhancing specialties to empower the vehicles.

Speak Clearly The office speaker phone is a useful tool. The latest devices are very sophisticated and offer some incredible options to make for a very productive meeting, whether participants are in the room or taking part remotely. Here are our picks:

JUNE 20 1 5

INBUSINESSMAG.COM

KONFTEL 55W This speaker

QUATTRO3 USB AND SIP/IP TELEPHONE (MT305)

FLX™ WIRELESS CONFERENCE PHONE

phone by

This device from

The FLX completely

Konftel is

Phoenix Audio

redefines the

an easy-to-

Technologies is

traditional design

use, compact

a high-quality

of conference

conference device with

conference

phones. Developed

impressive, crystal-clear sound

speakerphone that will turn any room

by Revolabs specifically for

thanks to the patented audio

into a professional conference room. It

conference rooms, executive

technology OmniSound® HD.

has an exceptionally large pickup and

offices and SoHo environments,

The Konftel 55W has been

broadcasting range, yet is small in size

the system comprises several

specially designed to be the

and discrete in design. It connects to

distinct components, giving

hub of communications; it

any computer via USB and is compatible

users unprecedented freedom

connects computers, mobile

with most SIP/IP phone service

with respect to placement and

phones/tablets and desktop

providers. It comes equipped with a

accessibility of the speaker,

phones. $329

built-in keypad and LCD screen. $649

microphones and dial pad. $699

konftel.com

phnxaudio.com

revolabs.com

7-Series: The BMW 7-series was introduced in 1977 as the flagship luxury vehicle by the German carmaker. The line is the largest of the luxury carmaker’s sedans and is credited with technologies and exterior design that trickle down to BMW’s other lines.

Photos courtesy of BMW (top and far left), Konftel, Phoenix Audio Technologies, Revolabs (bottom, left to right)

“Exclusive” and “powerful” are two ways to describe the 2015 BMW Alpina B7 Sedan. It is a limited, hand-finished production vehicle that can be so customized that it truly becomes personal. The 540-horsepower, 4.4-liter, TwinPower Turbo V8 engine offers 538 lb-ft of torque and hits 0-60 mph in 4.3 seconds. Customizing this powerful beauty is all about choices and bringing together the best in technology, materials and even mechanics. The interior is top-notch and goes beyond simple color and leather combinations. With hundreds of leather and trim options, passengers can enjoy more than comfort — they

MEALS THAT MATTER

BY MIKE HUNTER

The Montauk

pine nuts, currants, bacon, breadcrumbs, parmesan, lemon vinaigrette $12.00

Noontime Breakfast LOBSTER ROLL brown butter aioli, chive potato chip dust $19.00

Making the first meal of the day the choice also for the second is becoming a very popular way to do lunch, and breakfast places are opening up all around the Valley. Here are some of our picks for great midday morning fare.

JUNE 20 1 5

INBUSINESSMAG.COM

its pineapple-miso glaze accompanied by oyster mushrooms, edamame and whipped potatoes. In the old location on Scottsdale Road of Bungalow in Old Town, this “hideaway” is surrounded by patios and is bright and very open. The décor, like the menu, is very coastal, with woods and nautical patterns that give it a very appealing atmosphere. The service is quick and very professional. It does get busy at lunch, so allow for some time if going with a larger party. The Montauk

4360 N. Scottsdale Rd., Scottsdale (480) 994-1888 themontaukaz.com

BUTTERFIELD’S PANCAKE HOUSE

MATT’S BIG BREAKFAST

SCRAMBLE: A BREAKFAST JOINT

This charming hot spot may be the

This quick, casual hot spot is a

Butterfield’s has created a

reason for the breakfast craze here in

unique, almost Chipotle-style

variety of breakfast specialties

the Valley. Freshest “scratch”-cooked

concept for breakfast. The menu

that are served all day long.

meals for breakfast and lunch. Local,

offers all the great morning favorites

Choices span a multitude of

organic, natural and fresh ingredients

and some great lunch options.

world cuisines, and include a

are used. Open daily until 2:30 p.m.

Patrons order at the counter and the

traditional American “bacon

825 N. 1st St., Phoenix

food is then brought to them at their

and eggs” as well as a selection

(602) 254-1074

seat. Open until 2 p.m.

of nutritious and healthy

mattsbigbreakfast.com

9832 N. 7th St., Phoenix

offerings. Open daily until 3 p.m.

(602) 374-2294

7388 E. Shea Blvd., Scottsdale

6590 N. Scottsdale Rd., Scottsdale

(480) 951-6002

(480) 404-7264

butterfieldsrestaurant.com

azscramble.com

Montauk, N.Y. Nestled at the tip of the South Fork peninsula of Long Island, Montauk has been home to Army, Navy, Coast Guard and Air Force bases. The Montauk Point Lighthouse was the first lighthouse in New York State and is the fourth-oldest active lighthouse in the United States.

Photos courtesy of The Montauk (top and far left), Matt’s Big Breakfast (bottom)

KALE SALAD WITH CHICKEN

Inspired by the town of Montauk at the tip of Long Island, this open and airy eatery is already a favored hot spot for lunch. The beach-y look and the coastal-inspired menu make this a unique addition to the weekday lunch scene. Sandwiches, salads and light traditional dishes will make any diner feel like he or she is having a quick lunch seaside. Start with the Clam Chowder made fresh with thyme and cream, or the Tuna Tartare Guacamole made with cava orange, cilantro and Serrano chile. The Grilled Lobster Wedge is a real treat with egg, bleu cheese, bacon, beets, tomato and crispy shallots dowsed with blue cheese dressing. Another popular salad is the Avocado and Pink Grapefruit Salad with jalapeno, feta cheese, pumpkin seeds and cilantro tossed in a jalapeno vinaigrette. Delicious and made with top ingredients are the sandwiches. The Italian Turkey Pastrami is layered with a confit of peppers, havarti cheese and house pickles. A refreshing alternative to the original is the Montauk’s version of Chicken Reuben, which is made with caramelized cabbage, Thousand Island dressing and Swiss cheese on rye. For a main dish, the New York Strip takes a unique twist on the traditional with

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Internet. Data. Phone.

Steven G. Zylstra, Arizona Technology Council

Top Tech

Tech on Top There’s perhaps no other topic more important to the discussion of Arizona’s economic future than the technology industry. Seven years after we first felt the devastating effects of the great recession, it’s clear that real estate is unlikely to drive economic activity in Arizona as it once did. The technology sector is well poised to fill that void: It offers a tremendous upside in terms of a stable work force with high-paying jobs and the potential for global growth. Wages for technology workers are considerably higher than those in most fields. The U.S. Bureau of Labor Statistics calculated the mean annual wage for Arizona employees as $44,580 in May 2014. Meanwhile, a systems software developer earned $94,160 a year and an aerospace engineer earned $85,550. Those high-quality jobs also attract individuals who expect a high standard of living, driving demand for better schools and more service industries. Enrico Mortetti, an economist at the University of California Berkley, has found that every new technologysector job creates 4.3 new service jobs. A large percentage of the technology sector produces exportable goods — things that

Steven G. Zylstra has been

are built in Arizona and sold elsewhere. Exportable goods grow Arizona’s economy by bringing in new

president and CEO of the Arizona

capital from other regions.

Technology Council since 2007.

At the Arizona Technology Council, we’ve worked hard to make sure our lawmakers have taken notice of the positive impact the technology sector can make. Apple recently announced that it will invest $2 billion over 10 years to turn its Mesa facility into a global control data center, a decision supported by a $5 million tax credit for solar energy generation passed by the Arizona Legislature in 2014. The Arizona technology sector is also growing through organic development. With deep roots

He is responsible for strategy, development, operations and accomplishment of policy development, business goals and objectives and all financial matters related to the council.

that stretch back to the arrival of Motorola, a robust semiconductor industry that is fourth largest in U.S. is still thriving. Companies like Intel, Microchip and Freescale Semiconductor all manufacture in

He brought to the position his

Arizona. Arizona also has the fourth-largest aerospace and defense industry in the U.S. Tucson has

experience as president of tech-

been dubbed “Optics Valley,” boasting 23 observatory telescopes and dozens of businesses that

based economic development-

support them.

focused organizations in

Arizona’s technology sector is already a hotbed of innovation. Continuing its development means a brighter future for all of us. I’m pleased to introduce this In Business Magazine special section that spotlights the industry.

Pennsylvania. In taking the reins of the Arizona Technology Council, Zylstra returned to Arizona, where, while serving as general manager of General Pneumatics Corporation,

Sincerely,

Western Research Center (WRC), in Scottsdale during the 1980s and '90s, he was a co-founder and member of the Governor’s Arizona Science and Technology

Steven G. Zylstra

Council, as well as a co-founder

President and Chief Executive Officer

and past chairman of the Arizona

Arizona Technology Council

Innovation Network. He currently serves on numerous industry and community committees and boards of directors.

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Welcome to the In Business Magazine Top Tech special section, profiling technology business services companies that do so much to propel business. Technology has become a core aspect of every business enterprise, with the number of options expanding exponentially and advances that quickly turn yesterday’s “must-have” into today’s “obsolete.” Leading businesses in technology’s many fields call Arizona home in tech fields as diverse as aerospace, automotive, biotechnology and semiconductors, as well as software, Web applications and data centers. In Business Magazine is pleased to spotlight these Top Tech companies that are focused on directing technological advances to helping enterprises better their business.